1099-LTC Qualified Plan LTC period and LTC services entries

[xfbpilot]

I am in the personal income Misc income section where you put LTC payments.  My 1099-LTC statement shows an amount in box 1 but the per diem box in section 3 of the 1099 isn't checked, so per the instructions I have no entry of an amount put into the program for LTC payments.  The reimbursed expenses box is checked.  (It is a qualified plan.)  A couple of screens later Turbo Tax asked for the LTC Period and qualified LTC services provided.  I read the insurance policy and the LTC policy pays an amount each day.  I've had the policy for the full year.  So is the LTC period 365?  Or is it a 1? Or is nothing entered here?  Following that do I put in the total amount of LTC costs paid for the year in qualified LTC services.  Or do I just put in the amount covered by the LTC benefits and capture the unreimbursed portion of expenses in medical expenses addressed in the deduction section?  This is SO CONFUSING because there is insufficient guidance in the Turbo Tax instructions and/or IRS publication 502.  Help!

[MarilynG1]

Enter 365 for LTC Period when reporting your 1099-LTC for Reimbursement (not per diem). 

Then enter the total amount of LTC costs for the year, and the amount reimbursed. This will zero out the 1099-LTC as income, since you have more expenses than you were reimbursed for.

You should then receive a screen stating 'none of your long term care benefits are taxable.'

Yes, in Medical Expenses, enter the amount of LTC expenses that you were not reimbursed for, plus any premiums you paid for your Long Term Care insurance. 

[xfbpilot]

Thank you for the answer.  I note that my data input screens differ from what you posted.  I have no box asking for the total reimbursements received.  The only two boxes I have are the LTC period and the costs of qualified care (the first two boxes).   All that said, when I run the error check after following your instructions the program tells me I have to remove the LTC Period of 365 from the form 8853 pg 2 and that I have to remove the amount I put in for total costs for LTC.  When I do that the error check then passes muster and there are no longer yellow flags on the form 8853 pg 2.   Why it works this way I don't know but I followed your instructions exactly and the error check removes those entries before the return passes final QC.

[xfbpilot]

I figured it out!  I had to delete the person getting LTC from the screen that asks to confirm the LTC recipient's name and then type them in again starting from scratch.  Doing this gave me the same screens you show.  I think the mistake on the original entry made was because I answered the question about whether I got per diem or other payments under a qualified plan with a "yes" originally.  Entering "No" took me down your path and now the form 8853 pg 2 entry looks right with numbers in the right places.  Much happier.  Again, thanks.

[MoniqueLO_]

Thank you for the update! We are glad the issue was resolved. 

@xfbpilot